Indonesia Wants Larger Apple Investment to Lift iPhone 16 Ban

[MacRumors]

The Indonesian government is pushing Apple for a higher investment than its recently proposed $100 million before it will consider lifting its ban on iPhone 16 sales in the country, according to statements from government officials on Thursday.

Industry minister Agus Gumiwang Kartasasmita has held internal meetings to discuss Apple's proposal, but a ministry spokesperson reportedly said that the government expects more substantial commitments from the company.

"From the government's perspective, of course, we want this investment to be larger," Febri Hendri Antoni Arif told Antara News. The government is particularly interested in having Apple source components from domestic suppliers, suggesting this would create a "multiplier effect" for local employment.

Apple's current $100 million proposal was a significant increase from its initial $10 million offer earlier this month, and includes plans for research and development facilities and developer academies in Bali and Jakarta over a two-year period. The proposal also outlines plans to manufacture AirPods Max ear cup mesh components in Bandung starting July 2025.

The ongoing negotiations follow Indonesia's October 28 ban on iPhone 16 sales, implemented after authorities determined Apple had not met the country's requirement for 40% domestic content in smartphones. The government also claims Apple has invested only $95 million through developer academies, falling short of a previously promised $109.6 million commitment.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Indonesia Wants Larger Apple Investment to Lift iPhone 16 Ban

 

[neuropsychguy]

This is called extortion. As Darth Vader once said: "I am altering the deal. Pray I don't alter it any further."

Edit: My comment is a bit hyperbolic, but the Star Wars quote is accurate because the Indonesian government has the power to alter deals at will. Apple does as well with suppliers so in other situations Apple might be viewed as the Empire. I'm just focusing on the current situation between Indonesia and Apple.

In any case, I think there are better ways at growing economies than simply requiring certain businesses (e.g., Google, which was also affected) to locally manufacture and source products. Included with this is that there are better ways to incentivize individuals and businesses. For example -- if a business meets a certain target for local manufacturing or research or support, there can be tax or other incentives. That's a form of positive reinforcement. What the Indonesian government is doing is a form of negative punishment, which is not good for long-term relationships. Governments and businesses and individuals need good working relationships for all to thrive. The EU, as an aside, is effectively using negative punishment with its regulations. That is, in my opinion, the wrong way to work with people and businesses. Regulations will usually have negative consequences but there are ways to incentivize through positive means rather than negative ones.

 

[cicalinarrot]

This is called extortion. As Darth Vader once said: "I am altering the deal. Pray I don't alter it any further."

Regular protectionism.
And there was no deal to be altered, just a proposition by Apple that they refused. You are utterly misrepresenting what happened.

 

[I7guy]

No different than the EU making the rules up as it goes along.

 

[hagjohn]

Gov't bribery.

 

[CarAnalogy]

It will be interesting to see where Apple draws the line here. Clearly they will just keep asking for more until Apple says no.

 

[macfacts]

This is called extortion. As Darth Vader once said: "I am altering the deal. Pray I don't alter it any further."

Samsung and xiaomi are fine with those rules and are selling smartphones in Indonesia

 

[contacos]

This is quite literally extortion. Why should an US company building tech invest into a specific country (there are a lot of countries in the world, imagine everyone else starting to demand this).maybe just maybe, Indonesia is not producing anything they might need?

What stops other countries from doing the same.

"We are the experts of [...]! We demand you to invest in us, even if country X has more expertise in area Y!!!"

 

[neuropsychguy]

Regular protectionism.
And there was no deal to be altered, just a proposition by Apple that they refused. You are utterly misrepresenting what happened.

Indonesia has not changed anything about what they want Apple to do?

 

[syklee26]

Indonesian people who can actually afford iPhone will buy from overseas anyway. They may have more than 100 million people but most of them cannot afford it anyway.

 

[macfacts]

It will be interesting to see where Apple draws the line here. Clearly they will just keep asking for more until Apple says no.

Apple's fault for saying ok to India's demands. Now other countries saw that.

 

[syklee26]

Samsung and xiaomi are fine with those rules and are selling smartphones in Indonesia

that's because they sell phones at much cheaper price than iPhone.

 

[cicalinarrot]

No different than the EU making the rules up as it goes along.

Countries regulating foreign trillion dollar companies? Preposterous!
By the way, the EU has clear laws about taxes and controlling monopolies (everything Apple hates and undeniably tries to avoid to make more money), what you call "making rules as they go" is just... ruling. You have laws, then you decide how to apply them with court's rulings case by case. Is this all new to you as a concept?

 

[WarmWinterHat]

This is called extortion. As Darth Vader once said: "I am altering the deal. Pray I don't alter it any further."

It's protectionism, as are tariffs, which the US is about to implement in spades.

It's exactly the same thing, with different wrapping paper.

 

[I7guy]

Samsung and xiaomi are fine with those rules and are selling smartphones in Indonesia

Yeah so let them sell phones. It’s obviously up to apple if they want to be extorted. Samsung needs the money more than apple anyway.

 

[cicalinarrot]

This is quite literally extortion. Why should an US company building tech invest into some random country. It's not like Indonesia is producing anything they might need.

What stops other countries from doing the same.

"We are the land of papaya! We demand you to invest in us, even if country X has more expertise in area Y!!!"

The post made very little sense to me, then you decided to sprinkle some racist on it to make it *chef kiss* perfect.

 

[I7guy]

Countries regulating foreign trillion dollar companies? Preposterous!

Countries extorting American tech? Preposterous.

By the way, the EU has clear laws about taxes and controlling monopolies (everything Apple hates and undeniably tries to avoid to make more money), what you call "making rules as they go" is just... ruling. You have laws, then you decide how to apply them with court's rulings case by case. Is this all new to you as a concept?

That’s why iPadOS was included at the last minute under the “guidelines” of the dma. Because the rules are clear and concise.

 

[Entilzha]

Regular protectionism.
And there was no deal to be altered, just a proposition by Apple that they refused. You are utterly misrepresenting what happened.

Tell me you missed the gist of a Star Wars quote without telling me you missed the gist of a Star Wars quote.

 

[contacos]

The post made very little sense to me, then you decided to sprinkle some racist on it to make it *chef kiss* perfect.

How? I could have included Avocados or Tequila as a Mexican but this is about Indonesia.

What I am saying is, how do you invest a made up number of X that keeps increasing when another country is already an expert in field Y, just to be allowed to sell some products again.

Germany is an expert in cars, I don't see them investing into Portugal all of the sudden just to sell their Mercedes there

 

[cicalinarrot]

Countries extorting American tech? Preposterous.

Indonesia legitimately ruled for protectionist policies. Some companies complied, Apple didn't.
Apple proposed a deal to compensate. They did not accept it.
Apple can still decide to try and comply with those rules or leave. There's no absolute law of global capitalism being bound to no laws.

That’s why iPadOS was included at the last minute under the “guidelines” of the dma. Because the rules are clear and concise.

That is part of the ruling, not the law, of course. Law get down to a point of specificity. No surprise there since they were obviously applying the same anti-competition practices.

 

[raythompsontn]

As I have stated before, Apple should tell Indonesia to stuff it. Let the people in Indonesia who can no longer buy Apple products complain to their government. Apple should not be bowing to a third world country demands. This is nothing more than extortion by a third world government to get money from another company to bolster the country's sagging economy.

 

[neuropsychguy]

Regular protectionism.
And there was no deal to be altered, just a proposition by Apple that they refused. You are utterly misrepresenting what happened.

I'd love your clarification of exactly what happened and when. What laws were passed in Indonesia and what are the agreements between Indonesia and Apple? Has anything changed in how the laws are interpreted? Have any new regulations been implemented or are proposed to be implemented that have made it more difficult for Apple to comply? Are the laws and regulations in accordance with WTO requirements (which Indonesia is part of)?

Edit: Sorry for the double reply, I meant to have this all in one comment.

 

[cicalinarrot]

How? I could have included Avocados or Tequila as a Mexican but this is about Indonesia.

What I am saying is, how do you invest a made up number of X that keeps increasing when another country is already an expert in field Y, just to be allowed to sell some products again.

Germany is an expert in cars, I don't see them investing into Portugal all of the sudden just to sell their Mercedes there

Countries make their own rules actually. There is no universal law, Portugal could do that too with Mercedes. Well, they could if they left the EU, bad example but you get the point. And there are actually many, many similar decisions. The US just elected a president who promised something somehow similar against China. Seriously, guys, is this all new to you?

It is a risky move, of course, because other countries are allowed to respond with similar measures. It's just how the world works and has always worked, I'm surprised to see how many people here think this is the first case ever as a conspiracy against Apple.

 

[WarmWinterHat]

As I have stated before, Apple should tell Indonesia to stuff it. Let the people in Indonesia who can no longer buy Apple products complain to their government. Apple should not be bowing to a third world country demands. This is nothing more than extortion by a third world government to get money from another company to bolster the country's sagging economy.

So you don't think that governments of countries should be allowed to promote and protect their economy and domestic businesses/jobs? Corporations should be able to override the wishes of entire countries?

Curious..

 

[raythompsontn]

So you don't think that governments of countries should be allowed to promote and protect their economy and domestic businesses/jobs?

Certainly they should, if they have competing products. Indonesia has no capability to produce cell phones, computers, tablets, etc. Apple, or any other country, making those products is not going to impact any manufacturing in Indonesia. Name one product that Apple makes, that is also made in Indonesia. Indonesia is trying to extort Apple for money. Apple should just say no and pull out completely. Let Indonesia make their own cell phones, tablets, computers, watches. Let Indonesia show the world they are a technology powerhouse.